Tools to scale impact as a lead investor in Europe: Investment syndicates

We recently hosted a webinar on Investment Syndicates and the role of lead investors in running an efficient process.

As expert guests, we were joined by Marius Istrate, Chairman of the Board at TechAngels, Mircea Vadan, co-founder at Transylvania Angels Network, and Nilanjay Ghura, Angel Syndicate Lead, moderated by Ronald Rapberger, Head of Sales at SeedBlink.

The session focused on:

• Defining investment syndicates, their purpose and benefits.
• The responsibilities of lead investors and how they coordinate with other members.
• Legal and tax considerations when setting up syndicates across various jurisdictions.
• The use of SPVs, nominee structures, and digital tools to simplify operations.
• Practical steps for building and running a syndicate, including onboarding, communication, and exit planning.

Investment syndicates explained: what they are and why they matter

An investment syndicate is a group of angel investors who pool their money into a single entity, usually through a Special Purpose Vehicle (SPV) or a nominee structure, to invest in a startup. Instead of each investor negotiating directly with the founders, the syndicate appoints a lead investor who coordinates the process and represents the group. 

The structure not only gives startups quicker access to larger amounts of capital but also reduces the administrative burden of dealing with multiple small shareholders. For angels, syndicates open the door to greater flexibility. Many startups set minimum investment thresholds, such as €25,000, €50,000, or even higher, which may discourage smaller investors. Through a syndicate, participants can commit smaller amounts that fit their comfort level while still gaining exposure to promising companies. 

Syndicates also create opportunities to learn from more experienced lead investors, who assume the responsibility of conducting due diligence and maintaining ongoing communication with the startup.

Mircea Vadan: “Without a syndicate, managing 20–30 shareholders can get complicated. The syndicate simplifies this, though it requires angels to coordinate. The lead investor takes on that role and is usually rewarded by the others, often through a carry fee at exit.”

Inside the role of a lead investor

In an investment syndicate, the lead investor plays a central role in organizing and guiding the group. They are typically responsible for evaluating startups, conducting due diligence, negotiating terms, and then presenting the opportunity to other members. 

Beyond handling the administrative side, they act as the main point of contact between the startup and the group of investors. This simplifies communication for the founders and creates efficiency for everyone involved.

‍Mircea Vadan: “I think there’s quite a lot of education that needs to be done by the lead investor with the other members, because in the end, it’s a financial investment, and everyone needs to understand the terms.”

Lead investors also curate the right mix of investors who can add value to the company. This could involve identifying individuals with industry knowledge, legal expertise, or operational experience and inviting them into the syndicate to strengthen the startup’s support network. In this way, the lead investor functions as both a coordinator and a connector.

‍Marius Istrate: “In Europe, the role of lead investors in syndicates is still emerging and not as developed as in the U.S. Yet it’s important, because while there’s significant generational wealth here, leadership is needed to turn that into meaningful technology investments. We sometimes refer to these leaders as ‘super angels.’ Their job isn’t just to pool money but also to pool expertise.” 

Another responsibility of the lead investor is to ensure that the syndicate members themselves have access to the right expertise to handle practical challenges. Legal and administrative work can quickly become overwhelming, especially in cross-border investments. 

By bringing in members with legal or other domain-specific knowledge, lead investors reduce risks and create a stronger foundation for the group. This mix of capital and expertise not only supports the startup more effectively but also reassures other investors.

‍Nilanjay Ghura: “Even if you find a promising startup in Spain or Germany, the legal procedures for investing are entirely different. Having someone knowledgeable about those local laws is essential to avoid mistakes.”

How to build trust among your syndicate members

Trust is the foundation on which strong investment syndicates are built. Unlike institutional funds, where formal structures and contracts dominate, syndicates thrive on the credibility, discipline, and transparency of the lead. 

Building this trust requires consistent sharing of information, even when no investment is made, as well as a commitment to rigorous due diligence that shows members their capital is being stewarded responsibly. Over time, trust compounds: it not only reassures existing members but also attracts new ones through word of mouth. 

‍Mircea Vadan: “I think it requires a lot of effort in creating syndicates, ensuring that all 15, 20, or 10 people are on the same page about everything. Especially since, if you have a 15–20 page contract, some people don’t read it, and then they’re surprised to find out details later. So, all investors need clarity on the setup, the rules, and the conditions. Otherwise, it’s hard to deal with things that were signed a year ago."

Equally important, trust extends beyond the initial deal. When members see that the group collaborates to support portfolio companies in challenging situations - whether by offering industry expertise, guiding exits, or helping recover capital - it reinforces the sense of alignment and collective responsibility that makes a syndicate resilient.

‍Nilanjay Ghura: “Another lesson I learned early on was the importance of trust. In the first year, our syndicate had only four members, and we invested in just one startup. But I shared due diligence on 50 other startups, which gave members confidence in my process. Even those who didn’t invest ended up referring new people, and word of mouth gradually helped the syndicate grow.”

Run tax scenarios across possible exit outcomes

Another best practice for running syndicates is to be transparent about financial and administrative matters. Investors often focus on the headline deal terms, but the details, such as taxation, fees, and jurisdiction-specific rules, can significantly change actual returns. 

Lead investors who prepare scenarios in advance help avoid unpleasant surprises and build credibility with their members. Additionally, it’s under the duty of the lead investors to take the time to explain contracts, highlight potential exit scenarios, and ensure that everyone understands both the opportunities and the risks involved.

In practice, this often means holding review sessions or walkthrough calls when agreements are signed. By summarizing key points and answering questions, lead investors strengthen trust within the group and reduce the chance of misunderstandings. 

‍Marius Istrate: “Different SPVs come with different tax treatments depending on the jurisdiction, and this impacts overall returns. I’ve seen situations where expected outcomes were reduced once taxes were taken into account. That’s why, when presenting proposals to investors, we also run tax scenarios across possible exit outcomes to ensure transparency and set the right expectations.”

By mapping out these scenarios, syndicate leads not only demonstrate diligence but also create confidence among participants. The approach sets clear expectations, ensures fairness, and strengthens the trust that syndicates rely on to function effectively over the long term.

Streamlining syndicates with digital tools

Another best practice is to use online syndication tools and streamlined frameworks whenever possible. In some jurisdictions, the cost and complexity of setting up syndicates can be a barrier for both lead investors and members. 

‍Mircea Vadan: “[When working in the past with a traditional SPV], I needed to take care of all the nitty-gritty things, reporting to the state authorities, as in a usual company. Then I needed to deal with taxation issues, and that's a hassle as well. Now, we are happy to have more options in the European Union.”

By choosing simpler, more efficient structures, such as nominee vehicles, syndicates can operate with less overhead and focus on supporting the startups they invest in.

When investors know from the outset how legal issues will be managed and how their capital is protected, they are more likely to participate confidently. Adopting digital-first structures can make a meaningful difference in building credibility and efficiency.

‍Nilanjay Ghura: “For example, Estonia makes things much simpler. With e-residency, I was able to set up SPVs digitally at very low cost, using digital signatures and a straightforward process.”

Ongoing syndicate management can be streamlined through digital tools that cover the entire back office, including reporting, voting, and banking operations. A single hub allows investors and founders to centralize communication, governance, and portfolio tracking across multiple deals, reducing the administrative burden and ensuring smoother collaboration.

Why nominee models are gaining ground in Europe

Special Purpose Vehicles have been one of the most common ways to structure syndicates, providing investors with a single entity through which to participate in a startup. 

SPVs are recognized as highly efficient instruments in Europe. However, they also come with a series of challenges, as every country has its own legal and tax framework. What may be cost-effective in one jurisdiction can quickly become expensive in another.

‍Marius Istrate: “The challenge in Europe is that the friendliness of SPV frameworks varies by country. Sometimes, Estonia is the easiest place to set up, then France or Germany updates its legislation to make it more attractive. It’s exhausting to keep track across 27 EU countries. Due to this complexity, nominee structures are increasingly viewed as a more practical option."

A nominee acts on behalf of investors, holding shares while the economic ownership stays with individuals. This approach reduces administrative challenges, works better across jurisdictions, and ensures fiscal clarity for each angel investor. 

How SeedBlink simplifies syndicates with a nominee approach

Previously, SeedBlink operated on an SPV-based investment structure, but we transitioned to a nominee structure because we wanted to make the investing process more straightforward, tax-transparent, and efficient for both startups and investors.

Ronald Rapberger: “We selected Austria as the base for this model due to its favorable legal framework. The Nominee model enables faster investment completion, reduces administrative steps for investors, and streamlines follow-on rounds."

‍“One recurring issue across Germany, Austria, and Switzerland is the requirement for notaries. A startup investment can turn into a five-hour session where every word of a contract is read aloud, and you must be physically present, or appoint a junior lawyer with power of attorney. When I explain to international investors that under the nominee model, we handle the notary, they’re immediately relieved.”

Learn more - watch the whole webinar

Catch all the insights and key takeaways from the webinar - watch the full session here:

Your next step: launching a syndicate

If you’re considering leading a syndicate, whether you’re part of an investment club, family office, or just rallying fellow angels, SeedBlink aims to take the heavy lifting off your shoulders.

As a lead investor, you can define your own deal terms, carry, fees, instruments (equity, SAFE, CLA), and control how you run your group. Meanwhile, back-office tasks like reporting, voting, and governance are handled through the platform, so you can spend more time sourcing deals, mentoring startups, and building your community rather than wrestling with paperwork.

If you want to see what our investment syndicate looks like in action, check out how TechAngels Romania used SeedBlink’s syndicate management tools so that all members, from core angels to newer investors, could participate in a round they otherwise might’ve missed.

Take the first step and launch your syndicate today.